nt (net) or each division usin $ 1,984,000 $ 620,000 $ 148,800 $ 262,000 $ 2,907,00 $570,00 $ 145,35 $ 212,00 urn on investment (R

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 1CE: Forchen, Inc., provided the following information for two of its divisions for last year: Required:...
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1.Please Complete Solution With Details 2.Final Answer Clearly Mentioned 3.Do not give solution in image format
Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below
Sales
Average operating assets
Net operating income i
Property, plant, and equipment (net)
Required 1 Required 2
Required:
1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.
2. Which divisional manager seems to be doing the better job?
Division
Queensland
$ 1,984,000
$ 620,000
$ 148,800
$ 262,000
Complete this question by entering your answers in the tabs below.
Queensland division
Margin
Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and
turnover, (Do not round intermediate calculations. Round your answers to 2 decimal places.)
New South Wales
$ 2,907,000
$570,000
$ 145,350
$ 212,000
Turnover
ROI
Transcribed Image Text:Selected operating data for two divisions of Outback Brewing, Ltd., of Australia are given below Sales Average operating assets Net operating income i Property, plant, and equipment (net) Required 1 Required 2 Required: 1. Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. Which divisional manager seems to be doing the better job? Division Queensland $ 1,984,000 $ 620,000 $ 148,800 $ 262,000 Complete this question by entering your answers in the tabs below. Queensland division Margin Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover, (Do not round intermediate calculations. Round your answers to 2 decimal places.) New South Wales $ 2,907,000 $570,000 $ 145,350 $ 212,000 Turnover ROI
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